Sorry, Oracle. Basically, it says that Sony's trying to get the Eye Toy to act like a movement reader for a Wii-like remote.
Yeah, Flip, that's their thinking it looks like. They'll use the Eye Toy which is already out there (and quite popular in Europe) to act like a reading device for 3D movement. I'm assuming the next-gen Eye Toy will be able to read full 3D movement. If that's the case, Sony's trying to merge technologies to provide a Wii-like solution to game playing. They seem to think that it's going to be important enough in the future if they're pursuing the patent and spend some R&D on it, not to mention the motion-sensitivity in the PS3 controller.
Come to think of it, they did sort of come up with it first in the new gen as they made the Eye Toy. Now, I'm sure that didn't mean that they ever thought of it being the standard controller as they really just added it after the Wii-nouncement, but I'm sure they at least have been working on it for the Eye Toy.
I was there on that fateful day, were you?